Sen. Baucus is chairman of the Senate Finance Committee.

All over this country, families are emptying drawers, packing up cardboard boxes, and arranging to move. But instead of preparing for an exciting new chapter in their lives, many of these families are leaving the joy of home ownership behind. In 2007, the American real estate market saw more than one million foreclosures. And troubled times in the housing sector have spilled over into other parts of the economy.

It is clear that Congress must act — and act swiftly — to address continuing trouble in the housing sector, and save the American economy as well. The Senate Finance Committee included vital mortgage and tax relief for the housing sector in its economic stimulus bill earlier this year, and two key elements of the Finance package remain in the housing legislation that should come before the Senate soon. As the Senate begins work on the Foreclosure Prevention Act of 2008, the Finance Committee provisions are a significant part of the bill’s promised help for America’s sagging housing sector.

The first Finance provision in the Foreclosure Prevention Act extends the “net operating loss carrybackâ€? period. This extension allows corporations losing money in the economic downturn to apply excess net operating losses to tax returns from prior profitable years and receive any applicable refunds. For 2006, 2007, and 2008 losses, the bill extends the net operating loss carryback to five years from the two years currently in law. This provision will allow struggling businesses – including America’s homebuilders — to write off current losses over a longer period of years and recoup more cash to stay afloat now.

The Foreclosure Prevention Act also includes a Finance Committee proposal to expand Mortgage Revenue Bonds. This measure provides $10 billion in mortgage revenue bonds that will provide more housing options for homebuyers and renters. The tax-exempt private activity bond authority can be used to refinance subprime loans, provide mortgages for first-time homebuyers, and for multifamily rental housing. The provision also exempts interest earned on the bonds from the alternative minimum tax.

The Finance Committee approved these proposals because they are good for the housing market, good for this country’s economy, and good for all Americans. And that is still the case as the Senate considers them as part of the Foreclosure Prevention Act today. The Senate can’t stop the moving trucks from coming for many American families who are losing their homes. But Congress can — and should — make strides to keep more Americans from facing that same fate in the weeks and months to come.

This entry was posted on Thursday, February 28th, 2008 at 5:00 pm and is filed under Politics, Economy/Budget .